France's trade minister has declared that the European Union possesses the economic tools necessary to respond forcefully to American tariff threats, according to Radio France Internationale, as transatlantic trade tensions escalate following renewed protectionist rhetoric from Washington.
Trade Minister Franck Riester made the comments during an interview Friday, warning that the EU would not hesitate to impose retaliatory measures if the United States follows through on proposed tariffs targeting European goods. The remarks represent the strongest signal yet that Brussels is preparing for potential trade confrontation with its largest trading partner.
"We have demonstrated in the past that we have the tools, and we will use them if necessary," Riester said. "The European Union will not be intimidated into accepting measures that harm our economic interests."
To understand today's headlines, we must look at yesterday's decisions. Transatlantic trade disputes have flared periodically for decades, but the relationship has grown particularly strained since 2018, when the US imposed tariffs on European steel and aluminum. The EU responded with duties on American whiskey, motorcycles, and other products—a tit-for-tat exchange that damaged industries on both sides of the Atlantic.
While those specific tariffs were eventually suspended, the underlying tensions have not dissipated. American officials have repeatedly accused Europe of unfair trade practices, particularly regarding agricultural products and digital services taxation. European policymakers counter that US complaints ignore Washington's own protectionist measures and massive subsidies to domestic industries.
The latest friction centers on potential American tariffs on European automotive exports and a proposed carbon border adjustment mechanism that Washington views as discriminatory against US manufacturers. Riester defended the EU's carbon border tax as a legitimate environmental policy tool, not a trade barrier.
"Climate policy and trade policy must be aligned," he said. "We cannot allow carbon-intensive imports to undermine our industries that are making costly transitions to cleaner production."
Economic analysts warn that a full-scale trade war between the United States and European Union—which together account for roughly 40 percent of global GDP—would have devastating consequences for the world economy. Previous trade tensions contributed to slower growth, disrupted supply chains, and increased costs for consumers.
"Neither side can truly 'win' a trade war of this magnitude," said Dr. Gita Gopinath, a former chief economist at the International Monetary Fund. "The damage would be substantial and long-lasting for both economies and for the global trading system."
The European Commission has been quietly preparing contingency plans for months, updating lists of American products that could face retaliatory tariffs. According to EU officials familiar with the planning, the target list emphasizes goods produced in politically sensitive US states, a strategy designed to maximize political pressure on Washington.
Germany, whose export-oriented economy would be particularly vulnerable to American tariffs, has urged caution. German Chancellor Olaf Scholz has called for diplomatic engagement to resolve differences, warning that escalation serves no one's interests.
However, France has taken a more confrontational stance, with President Emmanuel Macron arguing that Europe must demonstrate strength and unity in defending its economic sovereignty. Riester's comments reflect that more assertive approach.
"We have been patient, we have been reasonable, but there are limits," the trade minister said. "If the United States chooses confrontation, they will find that Europe is prepared to defend itself."
Behind the public posturing, diplomatic channels remain active. EU and US trade officials have been engaged in technical discussions aimed at finding compromise solutions that would allow both sides to avoid the economic damage of escalating tariffs. Whether those talks can succeed before political deadlines force action remains uncertain.
